Trading Real-World Assets on Blockchain
| dc.contributor.author | Notheisen, Benedikt | |
| dc.contributor.author | Cholewa, Jacob Benjamin | |
| dc.contributor.author | Shanmugam, Arun Prasad | |
| dc.date.accessioned | 2018-01-08T07:47:30Z | |
| dc.date.available | 2018-01-08T07:47:30Z | |
| dc.date.issued | 2017 | |
| dc.description.abstract | Since its introduction in 2008, blockchain technology has outgrown its use in cryptocurrencies and is now preparing to revolutionize a multitude of commercial applications including value and supply chains, business models, and market structures. This work follows design science research to guide the implementation of a blockchain-based proof-of-concept prototype that enables the automated transaction of real-world assets, such as cars, and provides a valid, transparent, and immutable record of vehicle history to market participants, authorities, and other third parties. The contribution of this study to existing research is threefold: First, it introduces a built-in mechanism to reduce transaction risk resulting from the irreversibility of transactions in blockchain-based systems. Second, it replaces a trust-based, centralized, and bureaucratic register with a tamper-free and autonomous transactional database system that comprises a secure registration and transaction process. Third, it proposes a novel approach to mitigate adverse selection effects in lemon markets by providing a reliable, transparent, and complete record of each marketable asset’s history. In total, the findings in this article illustrate the potential of blockchain-based systems but also highlight technological shortcomings and challenges for commercial applications, such as scalability or privacy issues. | |
| dc.identifier.pissn | 1867-0202 | |
| dc.identifier.uri | https://dl.gi.de/handle/20.500.12116/10744 | |
| dc.publisher | Springer | |
| dc.relation.ispartof | Business & Information Systems Engineering: Vol. 59, No. 6 | |
| dc.relation.ispartofseries | Business & Information Systems Engineering | |
| dc.subject | Asymmetric information | |
| dc.subject | Blockchain | |
| dc.subject | Design science research | |
| dc.subject | Market for lemons | |
| dc.subject | Trust-free commercial system | |
| dc.title | Trading Real-World Assets on Blockchain | |
| dc.type | Text/Journal Article | |
| gi.citation.endPage | 440 | |
| gi.citation.startPage | 425 |